2023 J.P. Morgan Healthcare Conference Gets a Strong Health Assessment

January 18, 2023

By John Pennett

The J.P. Morgan Healthcare Conference week rebounded to close to pre-pandemic levels this year following a quiet past two years – complete with the soaking rains and gusting wind. 

The gathering of the pharmaceutical and biotech industry in San Francisco drew people from all over the globe including Australia, Singapore, Germany, France and the U.K.

The panelists at the various conference, including industry investors, executives and analysists, shared their outlook for 2023 and touched upon the following themes:

  • The 2023 capital markets will be dry for all but the most promising/complete companies, maybe with some light at the end of the year.  Biotech was hit harder than the broader capital markets but was since it was already “overvalued” from 2021, the fall looks steeper.  
  • Companies need to be capital-efficient, prioritizing the most promising assets and deferring certain projects.
  • Relationships need to be built early on, to build win-win scenarios (alignment of milestones and their importance) with potential partners and investors.
  • Boards will push management teams into some uncomfortable conversations regarding consolidation, out-licensing, downsizing, valuation resets and deferring certain projects.  Executives should be prepared and lead the discussion rather than be the victim.
  • There is tremendous innovation at universities and industry on a global basis. 

The pharmaceutical/biotech industry has accomplished so much through the pandemic and there is optimism for continued innovation in 2023.

About John Pennett

John Pennett is the Partner-in-Charge of the National Technology and Life Sciences Group and works closely with our IPO clients and their circle of legal and underwriting advisors to take an IPO from concept to close.